McLennan County farmers affected by a weak corn crop may see some relief in next year’s wheat crop.

Wheat prices have doubled in recent weeks, said Jason Johnson, an economist with the Texas AgriLife Extension Service.

Farmers may be frustrated because the price shot up in the past few weeks right after farmers harvested and sold much of their 2010 crop at $3 per bushel or less. But the futures market beckons, Johnson said.

With wheat prices having doubled in recent weeks and with lower production expected from fields overseas, Centext farmers, such as Vandiver Grain and Gin in Moody, may benefit from next year’s harvest.
Jerry Larson/Waco Tribune-Herald

Prices on Friday were at $7.12 per bushel and farmers can sell futures contracts now for next year’s crop to lock in that price, he said.

At the prices of the crop that just came out, farmers didn’t even recoup production costs, he said.

With futures for 2011, their two-year average take could run about $5 a bushel, which should at least cover costs for the period, Johnson said.

Most farmers are diversified with corn, wheat, milo and other crops.

Quality corn crops in the county have been spotty at best this year, farmers and others involved in agriculture have said.

The wheat crop was strong, but less helpful in offsetting corn losses because prices were down.

Wheat is an international commodity, with events in other producing nations affecting supply and prices worldwide.

The U.S. Department of Agriculture issued its World Agricultural Supply and Demand Estimates report on Thursday.

Global wheat production forecasts for this year and in 2011 show less production as some countries struggle with their crops.

Russia, a major producer, has had its production cut by drought and record heat in July and August. Crops in neighboring Kazakhstan and Ukraine are also down from weather problems.

Lower production for the near term also is expected in southern Europe, Algeria, Brazil, Uruguay, Belarus and Croatia.

Production is expected to increase in India, the United States, Australia and Uzbekistan.

The county’s big money maker, its corn crop, has taken a beating from excess rainfall at planting time late last winter that delayed planting and pushed many crops into the damaging heat of summer.

The Texas Agricultural Statistical Service shows on its website that in 2008 McLennan County produced 1,361,000 bushels of wheat from 33,700 acres that the farmers planted.

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